Google has unveiled its second crack at the payments market in the form of Android Pay, which will enable credit, debit, prepaid and small business cardholders to use their Android phones for everyday purchases in-store and within Android apps.
The ubiquity of mobile phones is changing the way consumers pay. According to a recent
Federal Reserve report1, 39% of all mobile payment users with smartphones have made a point-of-sale payment demonstrating the increased demand for simple and secure ways to make device-based payments.
For consumers and merchants alike, every purchase made with a tokenized credit, debit, prepaid or small business card will offer the same security, benefits and guarantees as any card transaction. And because Android Pay never shares the actual card number with merchants, consumers are provided with an extra layer of security.
Both Visa and MasterCard confirmed they have partnered with Google through the new Android Pay platform, opening up new secure payment options to financial institutions and merchants around the world working within the Android eco-system. Android Pay’s secure APIs will build on Google’s existing Host Card Emulation (HCE) functionality to create an array of new options for contactless in-store payments as well as a seamless in-app payment option for cardholders to shop through their Android Device.
“Mobile payments are here today, and are now an essential part of the core value proposition for new devices,” said Ed McLaughlin, Chief Emerging Payments Officer, MasterCard. “With the MasterCard Digital Enablement Service (MDES) and Android Pay, we can now use secure tokens to easily enable payments from a consumer’s connected device. Today’s news extends consumer choice and drives further ubiquity of payments on devices.”
“Mobile payments is big a priority for Google, so we’ve been working with major networks to help provide a seamless experience across a wide range of phones and stores. Android Pay will offer people further simplicity, security and choice when paying for things with their Android phones,” said Pali Bhat, Director, Product Management, Google.
Android Pay will be made available for US Android users (running KitKat or higher) in the upcoming months. Contactless payments are currently accepted at major US stores, restaurants, fuel and convenience stores who will now also accept card transactions made using Android Pay.